(APPX) This question tests your understanding of Application 4 in the appendix to this chapter: How do consumers respond to offsetting changes in taxes? The reason why an increase in the gas tax and a decrease in the income tax will lower gas consumption is:单项选择题

A

As income and prices rise, the budget line stays in place.

B

There is no way to give consumers enough additional income to enable them to purchase the same amount of gasoline as before.

C

The higher price of gasoline makes gasoline relatively more expensive and leads to a smaller quantity purchased.

D

The increased income leads consumers to purchase less gasoline.

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